TMZ even obtained photos of the baby passed out, sleeping in her car seat well after midnight while music blared and drunk partygoers stumbled by.
But Grammer, 57, has a perfectly rational explanation for why he took his daughter to one of the year's craziest parties -- he couldn't find a good babysitter.
The actor released a statement explaining why baby Faith accompanied him and his wife Kayte, 31, to the Halloween rager:
"Kayte is breast-feeding and we do not have a nanny or a trusted baby-sitter at this time, so Faith goes everywhere with us. The baby slept as her ears were covered the entire time and we left shortly after midnight," the actor exlained.
The actor's claims contradict TMZ's initial reports that Grammer and his wife partied until "the wee hours of the morning," and he added:
"We enjoyed the evening. We love our child. Kayte is my wife and lady love. We love our child. Kayte is my wife and lady love ... The world is round. All our eyes are blue. Happy Halloween and Cock-a-doodle-doo!"
Kelsey Grammer wasn't the only star to hit up a Halloween party this past weekend. Check out more stars in costumes: